IT Professional Indemnity & Liability Insurance Policies

Information Technology Liability Insurance is a combined cover for Professional Indemnity and Public (General) and Products Liability Insurance. It provides coverage for claims arising from failure of the insured products, services and/or advice and includes infringement of copyright, trademark, registered design, or any other plagiarism, libel, or slander. It also covers breach of confidentiality and privacy.

IT Professional Indemnity & Liability Insurance Policies

IT Professionals can be liable for a mistake or failure that causes a third party to suffer a financial loss, such as:

• Loss of data

• Business interruption

• Data migration difficulties

• Inadequate hardware or software support

• Injury caused by faulty hardware or software

• Physical loss of equipment

• Incompatible, inappropriate or ineffective hardware or software

IT Professionals can be liable for

To obtain a quotation, enquire online at www.optimuminsurance.com.au.

In most circumstances we are able to provide an quote over the phone. If you would like to discuss your needs further, contact us on 1300 739 861.

Policy coverage is always subject to the terms, conditions and exclusions of the insurance contract and policy wording provided by the insurer.

Each insurance company has its own policy wording. This means that coverage can vary considerably from one insurer to another. It is vital that you compare each policy based on the appropriateness of cover for your individual or business needs.

As Insurance Advisers, it is our role to understand the terms and conditions, so contact us now for advice and a quote.

IT Professional Indemnity & Liability Insurance Quote

Frequently Asked Questions

Professional Indemnity Insurance is essential protection for professional consultants who provide a service, including design and advice. It provides indemnity for claims brought against the insured company and its principals, partners and employees for financial loss, injury or damage arising from a breach (or an alleged breach) of your professional duty in the course of conducting their business.

It aims to protect the company’s position and assets in the event of a claim and endeavours to ensure they are able to carry on their business.

What is Professional Indemnity Insurance?

• Trade Practices Legislation

• Libel and slander dishonesty

• Loss of documents

• Defence costs

• Official enquiries cover

Professional Indemnity Insurance generally aims to provide protection for:

• Settlements, compensation and/or damages awarded against them; and/or

• Legal costs and other expenses associated with defending a claim.

Professional Indemnity Policy features may include:

Anyone who gives to another person advice and/or services of a skilful character according to an established discipline might be regarded as a 'Professional'. That means persons other than those in 'traditional' Professions, such as doctors and lawyers, are now considered to be Professionals, i.e. Computer consultants, advertising agents, acoustics consultants, trade associations and fund managers. The law requires that certain industries, for example Architects, Accountants, Engineers, Financial Advisers, Solicitors and Insurance Brokers, to exercise an appropriate level of skill when providing advice to third parties.

Who is a Professional Adviser?

A Professional will hold himself or herself out as having a special skill, which can be relied upon by another. Consequently the law requires that the Professional exercise the required skill to an appropriate level expected by that profession. Professionals are only human and mistakes do happen. Any financial loss, injury or damage arising from a mistake or failure by the Professional to exercise the required level of skill may mean that an award is made in favour of a person who suffers a loss, damage or injury. A Professional may also be held to be liable for a mistake even though there was no negligence.

Why do Professionals need Professional Indemnity Insurance?

Public/General Liability Insurance only covers liability arising from bodily injury or property damage and does not cover pure financial loss. If you have Public Liability Insurance and believe that this would provide you cover in the event a third party was injured, you are wrong. Most, if not all Liability Insurance policies exclude professional advice for a fee and the rendering of professional services. As a result, this policy would not respond to injury claims either.

Public /General Liability Insurance Exclusion

The following types of insurance are commonly termed "Claims Made" Contracts of insurance:

• Professional Indemnity Insurance• Directors and Officers Liability Insurance• Association / Non-Profit Liability Insurance• Management Liability Insurance• Employment Practices Liability Insurance• Fidelity Insurance

Claims Made Policies

Claims Made policies" only cover claims made or "Known Circumstances" that you become aware could reasonably be expected to give rise to a claim that arise during the period of insurance. Acts or omissions may have occurred in a prior period and, as long as the act or omission, was after the retro-active date, the policy will extend to those prior acts.

It is essential to maintain continuity of cover (no gaps in the period of cover) as claims made against you or circumstances of which you become aware could give rise to a claim, will not be covered if they are not disclosed within the period of insurance where they first arise. If there is any claim or potential claim or even a circumstance that could reasonably be expected to give rise to a claim, it should be reported to your insurer immediately it is known, regardless of your own view as to fault. If you know of a claim or circumstance and it is not reported within the insurance period in which it arises your insurance policy is unlikely to respond.

What is a Claims Made Contract?

A 'Known Circumstance' could be defined as any fact, situation or circumstance, which a reasonable person in the insured’s professional position would have thought, might result in someone making a claim against him/her. Therefore if a claim arises after the inception date of the policy from a fact, situation or circumstance that the insured knew or should have known, at the time of the commencement of the policy that might give rise to a claim, it would normally be excluded as it arose from a Known Circumstance

What is a Known Circumstance?

By notifying all circumstances that might give rise to a claim, during a policy period, an insured can get the benefit of their statutory rights under Section 40(3) of the Insurance Contracts Act 1984 (the Act). Section 40(3) provides an insured with statutory rights to notify a circumstance or insured, to an insurer, during the currency of the policy.

If a claim eventuates against an insured from the notified circumstances, then the insurer cannot deny indemnity, despite the fact that the claim arose outside the period of insurance. Therefore, any fact, situation or circumstance, which a reasonable person in the insured's professional position would have thought might result in someone making a claim against them, should be notified to their current insurer.

Why is Notifying all Known Circumstances Important?

If you change insurers, you will need to notify your insurer of every conceivable circumstance before the expiry date of your policy. If this is not done, and if a claim was to occur in the future from a circumstance not previously notified, you may be left uninsured, with neither the previous or the current insurer accepting liability for the claim. The prior insurer may deny the claim as the insured failed to notify the circumstance or claim during the period of insurance.

Changing from One Insurer to Another

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Presentation Disclaimer –– “This material contains general information only and may not suit your

particular circumstances. To decide if a policy is right for you please carefully read the relevant Product

Disclosure Statement (PDS) and/or Policy wording. A copy of the PDS or policy wording is available by

contacting our office on 1300 739 861;”

Disclosure Statement – “Optimum Insurance Services Pty Ltd is a Corporate Authorised

Representative of Insurance Advisernet Australia Pty Ltd (Car No. 291220), Australian Financial Services

Licence No 240549, ABN 15 003 886 687.”